06/02/2025
India’s IT industry is at a fascinating juncture, navigating both challenges and opportunities. The economic slowdown in developed economies, which are its largest export markets, has posed a significant hurdle. Sectors in the U.S. and Europe face budget constraints, impacting demand for traditional IT services. For instance, India’s IT export revenue reached $194 billion in FY23, yet 62% of this is exposed to the U.S. and 17% to the U.K.—markets currently seeing cost-cutting measures that could impact outsourcing budgets in the short term.
Despite these challenges, the industry is also at the cutting edge of innovation. Emerging fields like artificial intelligence (AI), cloud computing, cybersecurity, and blockchain are fueling demand for specialized expertise and solutions, as companies seek partners to support their digital transformations. Engineering and R&D services alone contributed $47 billion to the sector’s revenue in FY23, with growth expected to continue as global tech-driven transformations accelerate.
Our infographic highlights the recent performance of top industry players, such as TCS, Infosys, and HCL. Despite market fluctuations, companies like TCS achieved a 51.5% Return on Equity (ROE), underscoring resilience in a volatile market. Additionally, the Nifty IT Index rebounded with 28.61% returns in 2024 after periods of underperformance, signaling the sector’s adaptability.
At GAA Advisory, a specialized valuation firm, we bring extensive experience in valuing technology-driven assets, including software, intellectual property (IP), and broader tech sector assets. Our expertise supports clients—from startups to established firms—in unlocking value within this fast-evolving industry. Whether guiding startups on valuation strategy or assisting established companies in appraising emerging technology assets, GAA Advisory delivers insights that drive growth and maximize long-term value.
